Food Tech & Delivery

Marketplaces in Europe

Presented at AECOC in Madrid, 31 May 20181

2

What is food tech

B2B B2C & D2C

Food & biotechnology Robotics (warehousing, delivery)

Farm management IoT & iSensing

Supply chain technologies Wholesale marketplaces

In-store retail & restaurant tech Table bookings

Home, cooking tech, IoT Delivery marketplaces

Innovative food

Online supermarkets

Meal kits

3

€5.3 billion has been invested in European food tech

startups since 2012

€ 0.3B € 0.2B

€ 1.2B

€ 1.5B

€ 0.7B

€ 1.4B

–

100

200

300

400

€ 0.0B

€ 0.4B

€ 0.8B

€ 1.2B

€ 1.6B

2012 2013 2014 2015 2016 2017

Total amount (€M) Number of rounds

Investment in European food tech

4

2012 2013 2014 2015 2016 2017

€ 0.1B € 27M € 0.5B € 0.6B € 0.4B

€ 3M € 0.2B € 0.3B € 0.4B

€ 0.4B

€ 45M € 0.2B € 0.1B

€ 25M € 0.1B € 0.2B

€ 15M € 0.1B

€ 42M

Total (€M) € 0.1B € 0.1B € 1.1B € 1.2B € 0.3B € 0.8B

€3.6 out of the €5.3 billion (= 69%) has been invested

in a handful of major food delivery platformsInvestment in Leading food delivery marketplaces

5

Investment in other Food Tech areas has been on a

steady growth path

€ 0.1B

€ 0.1B € 0.1B

€ 0.2B

€ 0.4B

€ 0.6B

€ 0.0B

€ 0.1B

€ 0.2B

€ 0.3B

€ 0.4B

€ 0.5B

€ 0.6B

€ 0.7B

2012 2013 2014 2015 2016 2017

Investment in Europe’s food delivery marketplaces Investment in other European Food Tech

€ 0.1B € 0.1B

€ 1.1B

€ 1.2B

€ 0.3B

€ 0.8B

€ 0.0B

€ 0.2B

€ 0.4B

€ 0.6B

€ 0.8B

€ 1.0B

€ 1.2B

€ 1.4B

2012 2013 2014 2015 2016 2017

6

Selected corporate deals in food tech

Acquisitions Investments

Tazo, Mãe Terra, Pukka Herbs, Sir Kensington’s Gousto, Milkbasket, Sun Basket, Chromatin

Tails, Terrafertil, Chameleon Cold Brew, Blue Bottle Coffee, Sweet Earth Foods

Freshly

Five Star Custom Foods, EWOS Puris, Memphis Meat, Calysta

- Tovala, Beyond Meat, Future Meat Technologies, Memphis Meat

HungryHouse, SkipTheDishes, Hellofood, Pizzabo, Menulog, Deliverex, Clicca e Mangia, Food2u, AlloResto

FlyPay, SinDelantal, TouchBistro, iFood,

Foodfly, FoodPanda, Foodora, e-food.gr, Jidloted, Pizza.de, Foodarena

Hungry Group, Click Delivery, MyLorry,

VizEat, Couverts, BestTables, SeatMe, LaFourchette, MyTable, Eatigo

7

Europe’s largest consumer market opportunities.

Travel is furthest with online migration ...

Note: excludes finance1. Estimates by Dealroom based on equity research and companies’ investor presentations. Sources: PwC, Rocket Internet, Statista, Phocus Wright, company information.

Restaurants & bars€ 500 billion

10%booked online

Groceries€500 billion

<1%

Home & Living€200 billion

3%

Taxi €30B

6%

Delivery €30B

20%

Healthcare services€2 trillion

2%

Online penetration

Fashion€300 billion

10%

Wellness€100 billion

n/a

40%booked online

Flights €100B

40%booked online

Hotels €90B

8

... while food is a €1 trillion+ opportunity at the very

nascent stages of online migration

Note: excludes finance1. Estimates by Dealroom based on equity research and companies’ investor presentations. Sources: PwC, Rocket Internet, Statista, Phocus Wright, company information.

Restaurants & bars€ 500 billion

10%booked online

Groceries€500 billion

<1%

Home & Living€200 billion

3%

Taxi €30B

6%

Delivery €30B

20%

Healthcare services€2 trillion

2%

Online penetration

Fashion€300 billion

10%

Wellness€100 billion

n/a

40%booked online

Flights €100B

40%booked online

Hotels €90B

9

Food has high order frequency, and in case of

supermarkets, high basket value

v High order valuex Low order frequency

v High order frequencyv High order value

x Low order valuex Low order frequency

x Low order valuev High order frequency

Order frequency

Ave

rage

Ord

er

Val

ue

Source: Fabrice Grinda (adapted by Dealroom).

Hotels ($200+)

Real Estate

Doctor Booking

Handyman

Taxi($8)

Grocery ($100)

Food Delivery

($20)

Cars

Meal kits ($40)

10

Marketpower & commission are higher when supply

is abundant or the platform creates efficiency/demand

15-30%

10-15%

5-10%

0-5%

Source: Dealroom.

Hotels

Flights

Table bookings

Food delivery

Supermarket

Co

mm

issi

on

Market power

Fashion

Taxis

11

Trend towards more vertical integrated marketplaces

Meta-searchClassifieds Model

& Yellow Pages

Transactional

Marketplaces

Integrated

marketplaceeCommerce

Yelp Just Eat DeliverooHelloFresh

Amazon Prime

Owns listing v v v v

Handles

transactionv v v

End-to-end

solutionv v

Owns

inventory riskV

Revenue model Lead generation

Classified ad

(= listing fee or

subscription fee)

Transaction

commission

Transaction

commission (+ SaaS)

Unit sales /

subscription

Higher commission, more operational risk

Source: dealroom.co. Inspired by https://medium.com/point-nine-news/marketplace-from-broker-to-full-stack-operator-1d1d1aaf9c7f

12

€ 5.0€ 4.0

€ 1.8

€ 0.5

€ 2.5

€ 1.0

€ 1.0

€ 1.0

€ 1.5

€ 1.5

€ 1.4

€ 2.8 € 3.0

€ 1.5

€ 6.0

€ 9.0

€ 10.5

€ 6.5

Income Expenses Income Expenses Income Expenses Income Expenses

New markets . Market leadership . New markets . Market leadership

Unit economics in food delivery:

Deliveroo model vs. Just Eat model

Source: Dealroom estimates, company reports.

Avg. order €12x 12%

commission

Avg. order €20x 15% commission

Avg. order €20x 30% commission

Avg. order €30x 35% commission

91% loss

50% loss

38% profit

50% profit

Net revenue per order

Marketing

Marketing

Marketing

Other

Other

Other

Order-only platform model Integrated delivery model

13

Uber EATSAmsterdam, Bordeaux, Brussels, London, Lyon,

Madrid, Manchester, Milan, Moscow, Paris, Stockholm,

Vienna, Warsaw

European food delivery: the strategic landscape

Dominantly #1 in UK, Italy, Spain, Portugal, Denmark

Also #1 France

#1 in Germany (not dominant), Sweden, Finland

#2 in Poland

Present across Eastern Europe since FoodPanda

acquisition in December 2016

Present across Eastern Europe (and Asia and LatAm)

Focus on emerging markets

Dominantly #1 in Benelux and Poland

Strong #2 in Germany

Leader in premium segment

Strong #2 in France

Leader in Barcelona and Madrid with “order

anything” concept

14

Glovo: the Spanish on-demand delivery platform has

demonstrated that later market entry is possible

Source: Dealroom.co, Similarweb, Glovoapp.com, Priori Data.

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

About ▪ Anything you order through the app in less than one hour

Description ▪ One of the most popular delivery apps in Spain

▪ Top product is food delivery but most customers order

multiple categories

Founding ▪ In 2015 by Oscar Pierre and Sacha Michaud in Barcelona

Funding▪ Last round was €30M Series B in Sept 2017 led by

Rakuten and Cathay Innovation

▪ Total funding €37M

Countries▪ Countries: Spain, France, Portugal, Italy, Latin America,

Eatern Europe

Glovo key facts The most popular food apps in Spain (last 90 days)

Website visits is an indication of relative mind share

Spanish Desktop & mobile web visits (last 6 months)

iOS rank ~50th ~100th ~200th

Android rank ~60th ~100th ~200th

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